The holding of a physical or book entry security by a depository or custodian.

Secondary Market  Market where previously issued securities are bought and sold.

Second Market

Part of the Secondary Market through which trading takes place in securities subject to special ASE listing rules.


A group of securities similar with respect to industry, maturity, type, rating, and/or coupon.

Sector Allocation Investment of certain proportions of a portfolio in certain sectors.
Sector Diversification Constituting of a portfolio of stocks of companies in each major industry group.
Securities and Commodities Exchanges Exchanges on which securities, options, and futures contracts are traded by members for their own accounts and for the accounts of customers.

Securities Borrow

A collateralized security loan for a fee.

Securities Depository Center (SDC)

Institution established in Jordan for the purposes of the registration of securities, the transfer of ownership of securities, and the settlement of their value. It operates as the central registry in the Kingdom.

Securities Lending The loan of securities between brokers, often to cover a client's short sale; or a loan secured by marketable securities.
Securities Markets Organized exchanges plus over-the-counter markets in which securities are traded.


Instrument that signifies an ownership position in a corporation (a stock), a creditor relationship with a corporation or governmental body (a bond), or rights to ownership (e.g., option). 

Seller's Market  Market in which demand exceeds supply. As a result, the seller can dictate the price and the terms of sale.
Selling Climax A sudden drop in security prices as sellers dump their holdings.
Selling Short selling a stock not actually owned. If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for 8 dinars per share. Then, on Aug. 1, you purchase 1000 shares of XYZ at 7 dinars per share. You've made 1000 dinars (less commissions and other fees) by selling short.
Sell Order An order to sell securities.
Sell Out An action by the broker when a customer fails to pay for securities purchased and securities received from the selling broker are sold to cover the transaction.


The conclusion of a securities transaction when a customer pays a broker or dealer for securities purchased or delivers securities sold and receives payment from the broker. 

Settlement Contract The contract of settling the obligations of each the Broker and the Custodian related to a Trading Contract executed by the Broker to a custody client.

Settlement Date 

The date on which both parties of a transaction agree to deliver securities or pay cash.

Shareholder Person or entity that owns shares or equity in a corporation.

Shareholders' Equity

See Stockholders' Equity.

Shares Certificates or book entries representing ownership in a company.
Share Repurchase The process in which a corporation buys back previously issued shares of its own stock in the open market.

Short Sale 

Any investments with a maturity of one year or less.
Here is how it work:
You borrow the shares from your broker, sell them in the market and receive the money from the sale. This is obviously done when you hope that the price of the stock will drop so that you can buy it at a later date for less and repay your loan. Buying the shares back is called covering that short position.
A short selling transaction can be costly, since you pay your broker interest on the stock borrowed, and risky if the price of the security moves up sharply.


A short selling transaction involves selling a stock without owning it first. 

Sinking Fund

Money that is accumulated in a separate custodial account for the purpose of redeeming debt securities or preferred stock issues.

Small Investor An individual person investing in small quantities of stock or bonds. This group of investors makes up a minimal fraction of total stock ownership.


When a company finds that its high stock price is discouraging new investors, it may initiate a stock split to lower the price and increase trading. Stocks can split 3 for1, 3 for 2, 10 for 1 or any other combination.


Usually refers to a cash market price for a physical commodity that is available for immediate delivery.


The price difference between two related markets or commodities.

Statement of Cash Flows  A financial statement showing a firm's cash receipts and cash payments during a specified period.


Equity ownership of a corporation through the purchase of shares.

Stock Dividend 

Payment of a corporate dividend in stock rather than in cash.

Stock Exchanges

Worldwide, stocks are either traded on organized exchanges or Over-the-Counter (when trading is not centralized in a single place and in full view of all market participants).
Every industrialized country possesses its own Stock Exchange, with the major markets having several exchanges.
Exchanges vary by listing requirements (to begin trading) and maintenance standards (to continue trading), as well as by their rules and regulations governing trading execution, reporting and settlement. Stock markets also vary according to market structure and trading mechanisms. A company will choose a stock market on which to list by determining which one will effectively enhance the attractiveness of its stock to investors.

Stockholders' Equity 

The value of all stock of a particular company owned by the shareholders of that company. Calculated by subtracting a company's total liabilities from its total assets or a corporation's paid-in capital, donated capital, and retained earnings less its liabilities (also called, Shareholders' Equity, Net Worth, and Owners' Equity).

Stock Index 

An indicator used to measure and report changes in prices of a selected group of stocks. How a particular stock index tracks the market depends on its composition - the sampling of stocks, the weighing of individual stocks, and the method of averaging used to establish an index.

Stop Order 

An order to sell if and when the market price falls to a specified amount.

Street Name 

Indicates that a stock certificate is in the name of a brokerage house.

Strike Price

The stated price per share for which a stock option may be purchased or sold by the option holder.


An agent bank or subsidiary that provides local custody services for a global custodian.

Subscription Right (privilege) The right of current shareholders of a corporation to buy newly issued shares before they are available to the public.
Suspended Trading  Temporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell.


An arrangement when two companies lend to one another on different terms, for example at different interest rates or in different currencies. 

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

Communication network providing secure lines of trades and/or cash communication to financial institutions globally. Customers include banks, broker-dealers, securities depositories and clearing organizations, investment managers and stock exchanges.